The value of your jewelry can change over time. If your insurance policy still reflects what an item was worth when you first scheduled it, your coverage may no longer match the cost of replacing it.
That can become a problem when you need to make a claim.
Imagine discovering that a diamond earring or a Rolex you wore the night before is missing. You know the item is insured. You remember adding it to your policy. But when you look at the scheduled amount, you realize it may not reflect what that item would cost to replace today.
Scheduled personal property coverage is designed to provide additional protection for valuable items. But the amount of coverage still matters.
What Is Scheduled Personal Property Coverage?
Scheduled personal property is an endorsement to a homeowners or renter’s policy that insures specific high-value items such as jewelry, watches, collectibles, fine art, furs, musical instruments, stamps, and coins.
Each item is listed individually with a specific insured value. Depending on the policy, scheduled coverage may also provide broader protection than standard personal property coverage and may have a reduced or waived deductible for a covered loss.
Because each item is scheduled for a specific amount, keeping those values current is an important part of managing your coverage.
Why Can Your Jewelry’s Insured Value Fall Behind?
Scheduled values are typically based on an appraisal completed when an item is added to the policy.
The problem is that values can change.
Gold prices move. Diamond values change. Watches, collectibles and other valuables may appreciate over time. The cost of replacing an item can also change.
If the scheduled value has not been updated, the amount listed on your policy may be less than what it would cost to replace the item today, depending on the terms of your policy and how the claim is settled.
That’s why an appraisal from several years ago may not tell you what the same item is worth today.
When Should You Update Your Jewelry’s Insured Value?
There isn’t one date that applies to every item or every policy. The appropriate timing can depend on the type of item, changes in its value and the requirements of your insurance policy.
It’s a good idea to review scheduled items periodically and consider an updated appraisal when there has been a significant change in value.
You should also revisit your scheduled property when:
- You purchase a new piece of jewelry or other valuable item
- An existing item has significantly increased in value
- You receive an updated appraisal
- You make a significant change to your collection
- Your insurance policy is being reviewed or updated
Your insurance advisor can help you determine whether an item should be rescheduled or whether the insured amount should be changed.
How Do You Update a Scheduled Item?
Start by checking when each scheduled item was last appraised and compare that with what you know about its current value.
If the value may have changed, talk with your insurance agent about whether an updated appraisal is appropriate and whether the scheduled amount on your policy should be adjusted.
The goal is simple: make sure the amount listed on your policy is consistent with the item’s current value and the terms of your coverage.
It’s also important to remember that an appraisal and an insurance valuation serve different purposes. Your insurance advisor can help explain what documentation your policy requires and how the scheduled amount should be established.
Keep Your Scheduled Property Up to Date
Valuable items can change in value even when nothing about the item itself changes.
That’s why scheduled personal property should be part of your regular insurance review.
Check when items were last appraised, consider whether their values have changed and talk with your insurance advisor about any updates that may be appropriate.
If you’d like to review your scheduled property coverage, the team at Mason-McBride can help you look at your current policies and determine whether any updates should be considered.
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